LONDON - A new report by policy research firm Democracy Institute (DI) concludes that under a new U.K. tobacco display ban that requires retailers to hide tobacco products in their stores, small shops will close and illegal tobacco sales will increase, TalkingRetail.com reports.

According to the DI report, display bans have failed to reduce smoking in all countries that have introduced it, including Canada, Iceland, Ireland, and Thailand. The ban in England is scheduled to take effect in 2011 in larger stores and in 2013 in small stores. However, Britain??s previous government passed it and the National Federation of Retail Newsagents (NFRN) is urging the new coalition government to reconsider the measure.

"We place great hope in the new government following through on its pre-election promise to revise or revoke the ban. Doing so would firmly demonstrate its credibility on de-regulation and supporting small business," said outgoing NFRN president Suleman Khonat. "Abandoning something proven to be ineffective to focus on credible anti-smoking initiatives would demonstrate a commitment to health over headlines.

In the two years since Canada introduced a display ban, youth smoking rates have increased two percent, according to data from Health Canada. And in Ireland, smoking rates have increased seven percent in the past three years and are well above the European Union average.

In the two years since Canada introduced a display ban youth smoking rates have increased by 2% according to data published by Europe Economics and evidence from Health Canada.

A recent survey reveals that the majority of the U.K. public does not support the display ban and only 15 percent would oppose its repeal.